Cisco shares surged 15% as traders aggressively purchased call options ahead of the company's upcoming earnings report. This activity mirrors a previous surge when Cisco's shares rose over 16% following record revenues and optimistic guidance linked to its AI initiatives. The market's enthusiasm is driven by Cisco's perceived role in AI infrastructure, particularly in AI data-center networking. Despite Cisco's valuation being around 21 times its forward earnings, which is high for its mid-single-digit revenue growth, traders are speculating on a potential AI-led transformation. However, some analysts caution that the optimism may be excessive given the company's current growth rate.